Certificate of environmental compatibility and public need — Requirement — Exceptions

Ark. Code Ann. § 23-18-510 — under Light, Heat, and Power Utilities.

Ark. Code Ann. § 23-18-510

(a) (1) Except for persons exempted as provided in subsection (c) of this section and § 23-18-504(a) and § 23-18-508, a person shall not begin construction of a major utility facility in the state without first obtaining a certificate of environmental compatibility and public need for the major utility facility from the Arkansas Public Service Commission.(2) (A) The replacement, reconfiguration, or expansion of an existing transmission facility with a similar facility in substantially the same location or the rebuilding, upgrading, modernizing, or reconstruction for the purposes of increasing capacity or reusing a generation or transmission interconnection shall not constitute construction of a major utility facility if no increase in width of right-of-way is required.(B) In the instance of a generation facility that would meet the requirements of subdivision (a)(2)(A) of this section but for an increase in the width of the right-of-way caused by replacement, reconfiguration, or expansion of a transmission or related facility, the commission shall consider the generation facility separately from any transmission or related facilities to be under separate construction.

(1) Except for persons exempted as provided in subsection (c) of this section and § 23-18-504(a) and § 23-18-508, a person shall not begin construction of a major utility facility in the state without first obtaining a certificate of environmental compatibility and public need for the major utility facility from the Arkansas Public Service Commission.

(2) (A) The replacement, reconfiguration, or expansion of an existing transmission facility with a similar facility in substantially the same location or the rebuilding, upgrading, modernizing, or reconstruction for the purposes of increasing capacity or reusing a generation or transmission interconnection shall not constitute construction of a major utility facility if no increase in width of right-of-way is required.(B) In the instance of a generation facility that would meet the requirements of subdivision (a)(2)(A) of this section but for an increase in the width of the right-of-way caused by replacement, reconfiguration, or expansion of a transmission or related facility, the commission shall consider the generation facility separately from any transmission or related facilities to be under separate construction.

(A) The replacement, reconfiguration, or expansion of an existing transmission facility with a similar facility in substantially the same location or the rebuilding, upgrading, modernizing, or reconstruction for the purposes of increasing capacity or reusing a generation or transmission interconnection shall not constitute construction of a major utility facility if no increase in width of right-of-way is required.

(B) In the instance of a generation facility that would meet the requirements of subdivision (a)(2)(A) of this section but for an increase in the width of the right-of-way caused by replacement, reconfiguration, or expansion of a transmission or related facility, the commission shall consider the generation facility separately from any transmission or related facilities to be under separate construction.

(b) (1) An entity, including without limitation a person, public utility, utility, regional transmission organization, municipality, merchant transmission provider, merchant generator, or other entity, whether regulated or not by the commission, shall not begin construction of an electric transmission line and associated facilities, as described in § 23-18-503(7)(B), within a national interest electric transmission corridor without first obtaining a certificate of environmental compatibility and public need for the facility from the commission.(2) An electric public utility or a natural gas public utility shall provide notice to the commission of its intent to construct to recover any strategic investments, as defined under § 23-4-1303, subject to the Generating Arkansas Jobs Act of 2025, § 23-4-1301 et seq., as part of a public utility's application under this subchapter.

(1) An entity, including without limitation a person, public utility, utility, regional transmission organization, municipality, merchant transmission provider, merchant generator, or other entity, whether regulated or not by the commission, shall not begin construction of an electric transmission line and associated facilities, as described in § 23-18-503(7)(B), within a national interest electric transmission corridor without first obtaining a certificate of environmental compatibility and public need for the facility from the commission.

(2) An electric public utility or a natural gas public utility shall provide notice to the commission of its intent to construct to recover any strategic investments, as defined under § 23-4-1303, subject to the Generating Arkansas Jobs Act of 2025, § 23-4-1301 et seq., as part of a public utility's application under this subchapter.

(c) This subchapter does not require a certificate of environmental compatibility and public need or an amendment of such a certificate for:(1) Reconstruction, alteration, or relocation of a major utility facility that must be reconstructed, altered, or relocated because of the requirements of a federal, state, or county governmental body or agency for purposes of highway transportation, public safety, or air and water quality; or(2) An electric transmission line and associated facilities including substations of a design voltage of one hundred kilovolts (100 kV) or more to be constructed or operated by a municipal electric utility system that is located within the territorial limits of the municipal electric utility system.

(1) Reconstruction, alteration, or relocation of a major utility facility that must be reconstructed, altered, or relocated because of the requirements of a federal, state, or county governmental body or agency for purposes of highway transportation, public safety, or air and water quality; or

(2) An electric transmission line and associated facilities including substations of a design voltage of one hundred kilovolts (100 kV) or more to be constructed or operated by a municipal electric utility system that is located within the territorial limits of the municipal electric utility system.

(d) An entity granted a certificate of environmental compatibility and public need pursuant to subsection (b) of this section shall have the right of eminent domain as provided by Arkansas law for the limited purpose of constructing the certificated electric transmission line and associated facilities, as described in § 23-18-503(7)(B), to the extent that the facility is located within a national interest electric transmission corridor.

(e) (1) Strategic investments in major utility facilities under § 23- 18-503(7)(A) located on the same or adjacent property or in the same rights-of-way or adjacent rights-of-way by a public utility are exempt from this subchapter but shall be subject to the requirements of § 23-3-201 et seq.(2) The purchase of a major utility facility constructed by a third party for that third party, upon completion of construction or at any time after completion of construction, by a public utility is exempt from this subchapter but shall be subject to the requirements of § 23-3-201 et seq.(3) Except as provided in this section, this section does not alter the powers and authority of the commission.

(1) Strategic investments in major utility facilities under § 23- 18-503(7)(A) located on the same or adjacent property or in the same rights-of-way or adjacent rights-of-way by a public utility are exempt from this subchapter but shall be subject to the requirements of § 23-3-201 et seq.

(2) The purchase of a major utility facility constructed by a third party for that third party, upon completion of construction or at any time after completion of construction, by a public utility is exempt from this subchapter but shall be subject to the requirements of § 23-3-201 et seq.

(3) Except as provided in this section, this section does not alter the powers and authority of the commission.